Managed Print Services Within Our Industry
Fred BergerPresidentDocument Technology Solutions Consultingwww.documenttechnologysolutions.com
“Partnering with Dealers to Reach the Next Level”
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Agenda
• DTS Consulting Introduction• Key Industry Trends• Changing Demands of our Customers• Changing Landscape of Solution Providers• Benefits of Managed Print Services:
– For Your Customers– For Your Sales Reps– For Your Dealership
• Keys for Success• Summary • Next Steps • Questions
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DTS Consulting
• An Independent Industry Consulting Firm dedicated to “Partnering with Dealers to Reach the Next Level” • 35 years experience helping companies grow and improve
overall performance through change and innovation• Access to Alliance Partners representing some of the best
expertise in the industry• President of the 4th largest Sharp Dealership in the country• COO of a $20 million Dealership• Vice President Danka Acquisitions• Vice President of Ricoh Business Systems - Ricoh’s Direct
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Key Industry Trends
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Copier Industry• Speeds and
Feeds
Digital Revolution• Paradigm Shift
Explosion in Color
Technology-Driven Solutions• Managed Print
Services• Electronic Document
Management• Scanning (capture)• Processing (manage)• Integration (making
software work)• Routing
(storage/retrieval
Defining MPS
Active management of the organizationsentire hard copy fleet, document processes,and hardcopy strategy. This is more than justa financial / CPC arrangement. It typically(but not always) includes outsourcing thismanagement and support to an externalvendor.
Photizo Group
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Key Industry Trends
Managed Print Services is growing at a 27%
compounded annual growth rate
Customers are evolving as they gain experience
Best Practices still being defined
By 2013, up to 50% of resellers in North America
will be acquired or go out of business due in a large part
to their inability to be successful with MPS
The MPS market will exceed $32 billion for 2010
Of the 25+ software platforms available, at least
25% will be absorbed or consolidated into larger
packages and companies
Only 10% of Dealers consider MPS a core part of their
business
Within 5 Years: 40% of Devices under MPS states
HP!
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Our customers are looking to partner with vendors who can meet their changing demands
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Customer Needs
Reduce operating costs
Manage their assets
Reduce their IT distractions
Outsource printer help desk, training
and support
Provide one vendor solutions
Reduce their carbon footprint
(green)
Changing Landscape of Solution Providers
Solution Providers
Traditional Copier Dealers
IT Companies
Value Added Resellers ( VARS)
Supply Vendors
Super Stores
Internet Companies
Hybrid Copier Dealers
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Benefits for Your Customers
Increased Productivity of IT Employees• IT no longer supports printer helpdesk, training, and support• 40% fewer IT help desk calls• Eliminates burden of sourcing and managing their output fleet• Only one vendor to deal with• Reduces IT distractions
Increased Productivity of all Employees• Printers are retired and/or redeployed for maximum productivity• Workflows and Floor Plans are analyzed insure proper device allocation
Reduces Cost for Companies• 25% lower consumable costs• 5% lower acquisition costs• 10% - 40% overall cost reductions
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Benefits for Your Customers
Improved Efficiency • Provides one source for all service calls• Provides automated supply replenishment• Eliminated closet and obsolete supply inventory
Centralizes Asset Control• Fleet is optimized centrally based on workflow assessment• IT regains control over printer purchases and costs
Supports Corporate “Green” Initiatives• Replacement of old or high energy consumption devices• Creates responsible disposal options for consumables and printers• Recycle program for empty supply cores
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Benefits for Your Sales Reps
Greater Pipelines• Customers wiliness to reduce costs, increase productivity, increase profit• Companies spend between 1% and 3% of revenue on document output• Companies will spend to support their “Green” initiatives• For every MFP there are 4-10 printers
Help vs. Hurt to Customer• IT does not want to deal with Printer issues• Helps IT increase employee productivity and morale • Business consultant vs. sales rep
Creates Customer Open Door Policy• Meet and align with all employees to discuss document workflows• End result…Increased credibility and trust from employees
IT Spending up 4.6% in 2010• $3.4 trillion will be spent• Document Management in top ten spending categories• Touch budget not usually available
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Benefits for Your Sales RepsGenerates Higher Revenue
• Incremental business opportunity• Average transaction is much greater
Generates Higher Gross Margins• Not a commodity item• Less competition
Generates Higher Commissions• More revenue• Higher gross profit
Repeatable Solution• Vertical market solutions• Horizontal market solutions• Best Practices
Less Competition/Increased Differentiation
• Not all dealers market/understand
Not a Commodity Sale/ROI Sale
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Benefits for Your DealershipIT Spending up 4.6% in 2010
• $3.4 trillion to be spent in 2010• Companies spend between 1% and 3% of revenue on document output• Companies are willing/must spend $$$
Less Impacted by Economy
• Weaker economy creates more cost reduction opportunities, stronger economy creates more upgrade opportunities• IT departments looking to outsource “non” IT functions
Become the IT Partner with Customer
• Act as the IT help desk • Provide end user training and support to IT customers
Wider & Deeper into Present Account Base
• More and larger present customer opportunities• 6-7 printers for every MFP, helpdesk support, printer aftermarket
Stronger Business Model
• Less dependent on economy• Wider/deeper within customers
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Benefits for Your DealershipPull Through Revenue of MFP’s
• Optimization of printer fleet leads to more MFP unit sales• Reduced carbon footprint leads to replacement of older less energy efficient units
Increased Productivity of Sales Reps• More revenue opportunities, customers willing to listen about costs reductions• Long term contracts with replacement opportunities ongoing
Customers Less Likely to Switch Vendors• Become a valued business partner to IT• Cost of switching vendors high
Reduced Competition• Separates your company from traditional copier dealers• Difficult to displace – lead with a more consultative approach
Increased Revenue Opportunities• Increased offerings• Customers looking for one vendor to partner with
Higher Gross Margins• Not a commodity• Higher aftermarket revenue & gross profits
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Keys to SuccessExecutives
Dealer Principal Commitment
• Principal MUST be the driver #1• A Firm Understanding of Managed Print Services
Focus on Change• Must stay focused on change to be successful• Requires proper planning• Can not do part time, must be part on business strategy• Everyday business can not distract from success
Revised Business Strategy
• Mission of company changes• Customer value proposition changes• Goals of the company change
Business Plan
• Need to revise annual business plan – revenue, costs, expenses, etc.• Investment, software, demo room, support, etc.• Vendors, alliance partners, products, outside resources
Plans to include• time lines to accomplish tasks• reviews of progress• status updates• Agreement on vendors and product offerings
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Keys to SuccessSales
Vendor Selections, Alliance Partners, Products
• Printers• What printer line to carry?• Who will be your Printer supplier
Marketing Plan
• Start small• Should include a 4 point strategy –customers, prospects, vertical markets. larger accounts?• Determine program offerings: CPP, supplies inclusive, hardware included, etc• Are Alliance Partners Needed?• Brochures to support managed print services offerings and printers• Web site – must focus on managed print services offerings and printers
Sales Plan & Organization
• Demo’s must focus on MPS software solutions and printers• Lunch & learns focused on MPS software solutions and printers• Team selling – a sales reps can not know everything
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Keys to SuccessSales
Sales Training
• Solution selling vs. box selling• Business partner – rather than a sales rep• Assessments• MPS software knowledge – must be able to talk the talk
Sales Support Organization
• Pre sale support• Post sale support• Specialist?
Activity Tracking
• Need to establish MPS key performance indicators• Demos, appointments, proposals• Assessment engagements
Sales Compensation Plan
• Must include a Managed Print Services component (driver)• Both sales rep and sales managers
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Keys to SuccessSales
More In-Depth Account Reviews
• Must include a MPS workflow review• Team account reviews
Performance Objectives
• Objectives should include: % of MPS revenue, # of Demo’s, # of transactions, # assessments
Key Sales Rep Attributes
• ability to ask probing questions• qualifying abilities to include prospect’s business processes and workflow• Line of Business Knowledge• technology driven
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Keys to SuccessService
Service Readiness
• Service technician training• Technical support
Parts Planning
• Who will be your parts supplier?• Will your supplier perform training?• What parts do you need to stock?
Service Performance Objectives
• How many technicians need training?• How many printers can a technician handle?
Will you offer help desk support?
• Who will handle this• Will you use remote servicing?
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Keys to SuccessOperations
SuccessSupplies• Who will be your supply vendor?• You should choose a supplier that can drop ship FREE• You should choose a Supplier that carries ALL brands• Will you use OEM vs. non- OEM• Will you have your supplies Private Label?
MPS Software
• Do you plan to invest in your own MPS software?• Will use an outside vendor MPS software
Leasing companies/programs
• What leasing companies will you use?• Who will bill customer?• What programs does leasing company offer ie: sale and leaseback?• What leasing programs will you offer?
Demo Room / Show Room Upgrades
• show room equipment must include MPS software 20DTS Consulting
Summary
Technology is Driving Industry Change at a
Rapid Pace
MPS & Electronic Document Management are Critical Components
of this Change
Your Customers are looking for vendors to help the leverage this
change
The opportunity is there to establish a significant
market position which will provide long term revenue
and profitability
Staying ahead of competition requires
a well defined strategy and flawless execution
Create a plan before you
jump in
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Next StepsUnderstand Managed Print Services
What do you plans will you offer?
Discuss Roles & Responsibilities• A
ssign a team and team leader
Evaluate Abilities• D
o you need outside help?
Create/Agree on a Timeline• U
se SMART goals
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Questions ?
For More Information Contact:
Fred BergerPresident
Document Technology Solutions Consulting, Inc.727-403-3936 ©
[email protected] Technology Solutions Consultingwww.documenttechnologysolutions.com
“Partnering with Dealers to Reach the Next Level”
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